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How to Calculate Conversion Rate?

Aug 9th 2015 at 11:29 PM

There are many marketers who have a Web Analytics system installed on their website. But, a majority of them do not keep a record of the results. Having an analytics system installed without using it regularly is of no use.

Why marketers are not using this analytics system regularly may be because of the process it requires – choosing an analytics system – getting an account or installing the software – configuring the website with JavaScript to count the visitors – choosing the conversions – preparing the website to report conversions – analyzing the reports. This task may seem very difficult for the marketers to follow. It is also seen that even after following this entire process, the marketers do not learn much about their customers.

Conversion rate is an important element of the analytics system that can be calculated by dividing the number of conversions by the total number of visits or visitors on the site. A visit is a session on a website. Every time a person comes to a site, it is counted as a visit. It may be a new user coming in every time or may be the same user repeatedly coming in several times a day. On the other hand, if you consider visitors, then this aims to the different users that come in to the site. Even if the same user is coming in more than once a day, it will be counted as only a single unit of visitor. So, in order to calculate the conversion rate of your business, you first need to consider whether you will be analyzing it on the basis of the number of visits or visitors on your website.

It depends on what kind of business you are into that can help you decide on which element you need to consider. For example, if you are a business that deals with everyday shopping like fashion garments, fashion accessories, gifts, baby products, then you can consider the number of visits because these websites are such that the same customer may visit every day or even more than once a day to purchase products. But, if you are into a business of home décor, automotives, properties, then you must consider the number of visitors because a single visitor will not purchase every time he visits you. He may be visiting you every now and then to get more information about you or to find out new deals and offers.

But, there are other businesses like those dealing with mobile phones, computer accessories, auto parts or sports gear, where you cannot decide upon whether to choose the number of visits or visitors. So, you must carefully analyze and come up to your decision. But, it is important that once you decide, you must stick onto that element and keep checking regularly.


Seeing the current state of the marketers, the web Analytics industry must find out a way to make it easier for marketers to analyze their conversion rates. And as marketers, you must also make sure to be very regular while checking your conversion rates. If possible, try to check it every day.


About Author:

Karen Jain is the SEO Consultant for Jain Technosoft, a company which provides website design & development services in Bangalore, India. With years of rich experience in website design & SEO industry, Karen’s expertise include quality customer service and other marketing strategy which is related to business

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